Dow Jumps 485 Points

(page 3 of 3)

Among Tuesday's stocks in the news, Sovereign Bancorp (SOV) named Paul Perrault as president and CEO, effective Jan. 3, 2009, replacing Joseph Campanelli. Effective today, the bank's CFO and CAO Kirk Walters will begin serving as interim president and CEO until Perrault joins the firm. Sovereign also says it is well capitalized, according to all regulatory requirements, and is fundamentally sound by all financial and operational measures. Sandler O'Neill upgraded the stock to hold from sell following precipitous decline in the stock yesterday. The stock doubled to $4.71 on Tuesday.

Genworth Financial (GNW) shares rose after the company says it is examining a number of alternatives regarding its U.S. Mortgage Insurance business, including a possible spin-off. It reaffirms its sound financial foundation and cash availability to meet liquidity requirements across the company.

Pfizer (PFE) plans to announce today that it will abandon efforts to develop medicines for heart disease, as part of a broad research reshuffling plan, according to a Wall Street Journal report. The article says Pfizer will be leaving a field that includes its cholesterol-lowering drug Lipitor and other medicines, and is also expected to announce it is exiting therapies for obesity and bone health, to focus on more-profitable areas, such as cancer.

Huntsman Corp. (HUN) announced the decision of Delaware Court of Chancery to enter judgment in favor of the company denying all declarations sought by Apollo Management, L.P. and Hexion Specialty Chemicals, Inc. in their suit requesting that Chancery Court excuse Hexion from its obligation to consummate the pending buyout transaction. Huntsman continues to seek damages exceeding $3 billion in its Texas lawsuit against Apollo and its partners Leon Black and Joshua Harris.

International Rectifier (IRF) sent a letter urging shareholders to reject Vishay Intertechnology's (VSH) $23 per share buyout offer, as the company believes it is inadequate taking into account the future prospects of IRF and the synergies that Vishay can derive from proposed acquisition.

Timken Co. (TKR) raised its third-quarter EPS outlook, excluding special items, to $1.00-$1.10, above its previous forecast of 65-70 cents. The ball-bearings maker cites continued strong global industrial demand and its capacity-expansion initiatives, as well as declining scrap metal prices and lower charges under the LIFO accounting standard. The company boosted its full-year 2008 EPS outlook, excluding special items, to $3.30-$3.45, up from $2.95-$3.10.

Pepsi Bottling Group (PBG) posted third-quarter EPS of $1.06, vs. $1.12 one year earlier, as a 14-cent tax benefit in the year-ago quarter offset a 2.3% revenue rise. In 2008, the company expects to achieve top-line growth in the mid-single digits. Its comparable operating profit is expected to grow in the low-single digits. Pepsi Bottling's comparable EPS is now forecast to be $2.32-$2.38. Operating free cash flow is seen at about $620 million.

PMI Group (PMI) announced that, effective Jan. 1, 2009, its primary mortgage insurance company, PMI Mortgage Insurance Co., will terminate all of its existing excess-of-loss reinsurance arrangements with lender affiliated captive reinsurers. On that date, in-force excess-of-loss contracts will be placed into runoff and will mature pursuant to their existing terms and conditions.

Anadarko Petroleum (APC) says that nearly all of its operated deepwater Gulf of Mexico platforms and Gulf Coast properties are operational. The company expects total sales volumes for the third quarter to be at or near 51 million barrels of oil equivalent (BOE), the low end of its guidance. But Anadarko says timely repairs to third-party downstream infrastructure could hurt fourth-quarter sales volumes, as some production remains shut in or curtailed.

Andrews is managing editor of the Investing Channel for BusinessWeek.com . McCormack is senior producer for BusinessWeek.com's Investing channel .